Author(s)

Lerong Li, Qinxi Liu, Chengchen Yang

Corresponding Author

Lerong Li

ABSTRACT

Digital currency, also known as “digital cryptocurrency”, according to the general theory of academic circles, digital currency refers to electronic currency which is based on cryptography and peer-to-peer network technology, generated by computer programming, and distributed and circulated in virtual environments such as the Internet. The central bank digital currency (CBDC) can change many aspects of the monetary policy system, and improve the system and transparency of monetary policy. The implementation of CBDC will inevitably lead to major changes in the way of currency issuance and payment. If it is further extended to the entire financial system, it will also pose a challenge to the existing monetary system and lead to the deconstruction and reconstruction of a country's entire economic system and national and social governance system to a certain extent. Under the background of the increasingly developed private digital currency, the monetary authorities of various countries also need to respond positively for the sake of maintaining monetary sovereignty and financial stability and maintaining the competitiveness of central banks' monetary and payment systems. Based on Marx's monetary theory, this paper analyzes the possible impact of issuing CBDC and puts forward relevant suggestions.

KEYWORDS

Digital currency, Monetary theory, Economic system